Hong Kong Industrialist

FOCUS STORY 專題 US Sanctions Bring New Challenges for Hong Kong Businesses In July, the US announced the cancellation of Hong Kong’s special trading status and since then imposed different sanctions against Hong Kong, making the situation of local industries even more difficult. One of the sanctions is the requirement that Hong Kong-made goods exported to the US must be re-labelled “Made in China”. According to Government statistics, the total value of Hong Kong’s direct exports to the US in 2019 was HK$3.67 billion. In the first half of 2020, jewellery and food were Hong Kong’s top two exports to the US and thus are expected to be more greatly affected. The measure, to become effective in November, will undermine the uniqueness and competitiveness of Hong Kong products. To many consumers, “Made in Hong Kong” is a symbol of assurance and quality. With the new labelling rule, American consumers may find it hard to distinguish between “Hong Kong-made products” and “China- made products”. Sales of Hong Kong products will definitely be affected. The US government has also announced the suspension of the agreement concerning tax exemptions from income derived from the international operation of ships. Hong Kong ship operators will have to pay taxes to the US Government, resulting in an increase in operation costs which are likely to be passed onto consumers. If the US takes further action by subjecting Hong Kong products to the same level of tariffs as China- made products, the competitiveness of Hong Kong products will be reduced further. Despite the various challenges Hong Kong industries are facing, the FHKI believes that the current situation provides an opportunity for industrial transformation. It is time for manufacturers to turn to the Mainland and Southeast Asian markets to tap more business opportunities. The Greater Bay Area, with huge consumption potential, is a gateway to the Mainland market. Southeast Asia, where production lines can be moved, will help diversify supply chain risks and ensure its stability. We will take a look at the Southeast Asian markets and explore what opportunities are there for Hong Kong manufacturers. 美國制裁為港商增添新挑戰美國7月取消美國給予香港貿易上的特殊地位，並陸續宣布對香港實行制裁措施令香港工業雪上加霜。其中一項制裁措施為出口美國的香港製造貨品，必須貼上「中國製造」標籤。據政府統計， 2019年香港直接出口至美國的貨品總額為36.7 億港元，而今年上半年香港出口至美國的貨品價值總額最高為珠寶首飾及食用產品，料兩者影響較大。雖有關措施已延至今年11月才實施，但業界仍擔憂此舉會削弱香港產品的獨特性和競爭力，因「香港製造」一向是本港最強而有力的信心及品質保證，很多消費者皆以此為購買準則，新規例下，美國買家便無法分辨「港貨」與「中國貨」，繼而影響港產貨品的銷售。另外，美國政府亦已宣布暫停與香港政府簽訂的船舶國際營運入息課稅寬免的協定，即香港船舶須向美國政府繳稅，此舉將增加航運公司的營運成本，而增加的成本很可能轉嫁至貨品上。若美國再進一步落實取消香港獨立關稅區待遇，屆時香港出口貨物稅率將會與內地貨品相同，將進一步削弱港產貨品的競爭力。雖然香港工業正面對滿途挑戰，但工總認為「有危便有機」，這正是一個工業轉型的契機，放眼中國內地及東南亞市場，拓展更多商機。企業可借助大灣區龐大的消費潛力，逐步把貨品打入內地市場。另一方面，可將生產線拓展至東南亞地區，以分散供應鏈風險，確保供應鏈的穩定性。下文將詳細剖析香港工業如何可「轉危為機」。 18 | 10-12/2020

Hong Kong Industrialist - Oct 2020